Mr Bull, 72, and Mrs Bull, who is in her late 60s, were not in court for the announcement.

During the hearing of the appeal in November, James Dingemans QC, for the Bulls, argued that the couple were entitled to hold "outdated" religious beliefs.

He said the Bulls operated a policy directed towards sexual practice not sexual orientation and said they believed that permitting unmarried people - whether heterosexual or homosexual - to share a double bed involved them in "promoting a sin".

Mr Dingemans said the Bulls were not trying to undermine the rights of Mr Hall and Mr Preddy and judges had to carefully balance all human rights involved.

Robin Allen QC, for Mr Hall and Mr Preddy, argued that his clients had a "lawful civil partnership" and the guesthouse should have been "open" to them in the same way it was to heterosexual married couples.

The judges heard that the Bulls were being backed by the Christian Institute and Mr Hall and Mr Preddy by the Equality and Human Rights Commission.

After the ruling, John Wadham, the Commission's group legal director, said: "I have genuine sympathy for Mr and Mrs Bull, as their beliefs are clearly strongly held.

"We believe that this case will help people to better understand the law around freedom of religion.

"When offering a service, people cannot use their beliefs - religious or otherwise - to discriminate against others.

"As the discrimination ruling has been upheld, Mr Preddy and Mr Hall are entitled to the compensation ordered by the county court. However, the Commission has no intention of enforcing its entitlement to legal costs."

Simon Calvert, of the the Christian Institute, which funded Mr and Mrs Bull's appeal, said: "Peter and Hazelmary have been penalised for their beliefs about marriage.

"Not everyone will agree with Peter and Hazelmary's beliefs, but a lot of people will think it is shame that the law doesn't let them live and work according to their own values under their own roof.

"Something has gone badly wrong with our equality laws when good, decent people like Peter and Hazelmary are penalised but extremist hate preachers are protected."